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Post by Grainbelt on Oct 22, 2011 8:46:04 GMT -5
Not only that but today's oil is heavier. It's more sour. It's less efficient to refine. It comes from places we wouldn't think of bothering with back when we used to produce so much more of it. One of the many reasons ethanol will do just fine if we get rid of the blenders credit and mandate. Blending these lower grades with ethanol boosts their ability to be refined into quality 87 octane gasoline. Another efficiency generator in a resource constrained world......
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Post by ses on Oct 22, 2011 16:57:07 GMT -5
ses, We haven't had a real leader since President Reagan. This is your problem Plug, you are no different than the meth addicted, welfare recipient, inner city, single mother who is waiting for someone else to fix the situation she finds herself in.....you moan and cry wanting a Pol or a "leader" to fix all the ills of a nation. All your social and political engineering can't change reality. You have to be willing to be ultra efficient and compete in order to prosper and improve the situation you find yourself in but no one on either the left or the right will publicly face up to this fact. We keep throwing nonsensical solutions out that appease the "Oprah crowd" as well as the "Rush and O'Reilly crowds" None of the BS will work in the end. Trade barriers, tariffs, minimum wage laws, extended unemployment benefits, federal energy mandates, subsidies to one party or another, HUGE military expenditures.......all they do is make you less competitive, inefficient, misallocate capital, and lower your long term standards of living. We don't need leaders......We need pols to get the hell out of the way and let the successful succeed, and allow others to fail, so they can get up off the floor and get on to succeeding. Ronald Reagan a great leader my a$$, he kept right on a spending like everyone before and after him. Damn fine post there Grainbelt!
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Post by looter on Oct 23, 2011 8:41:21 GMT -5
Not only that but today's oil is heavier. It's more sour. It's less efficient to refine. It comes from places we wouldn't think of bothering with back when we used to produce so much more of it. One of the many reasons ethanol will do just fine if we get rid of the blenders credit and mandate. Blending these lower grades with ethanol boosts their ability to be refined into quality 87 octane gasoline. Another efficiency generator in a resource constrained world...... That's interesting. Did a little reading on the subject this am, looks like we will need ethanol worse in a few more years once crude oil is more like tar.... So how big of a blunder was it to not build ethanol pipelines back when political capital backed ethanol? How stranded in the cornbelt will you guess ethanol becomes without the tax credit to get it transported to the population centers? Does ethanol production become a function of how much e85 we can burn near the plants? TIA!
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Post by kwestfarms on Oct 23, 2011 10:38:40 GMT -5
Grainbelt : I agree with Glow. He was our only Pres. who knew when his ass had been handed to him ( see Labanon, 225 killed in barracks bombing ). Didn't take him long to get that tail between his legs and run...of course, 6 weeks or so later sent troops into Granada and defeated the great Cuban military machine!!! Which by the way still remains a threat to our great state of Florida...damn what was our great leader thinking ??.... Nukes are the answer!! Why didn't he nuke them?? John
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Post by Grainbelt on Oct 23, 2011 18:33:13 GMT -5
One of the many reasons ethanol will do just fine if we get rid of the blenders credit and mandate. Blending these lower grades with ethanol boosts their ability to be refined into quality 87 octane gasoline. Another efficiency generator in a resource constrained world...... That's interesting. Did a little reading on the subject this am, looks like we will need ethanol worse in a few more years once crude oil is more like tar.... So how big of a blunder was it to not build ethanol pipelines back when political capital backed ethanol? How stranded in the cornbelt will you guess ethanol becomes without the tax credit to get it transported to the population centers? Does ethanol production become a function of how much e85 we can burn near the plants? TIA! Hey Looter, as we have discussed before I am a big fan of E10 thru E25, not so much for E85. I am also a believer in markets. I think over the next 5-10 years the E Pipelines will get built even without government help. The profit motive will work just fine. Efficient outcomes come about faster when the pols stay out. That said, it is tough to argue that if they had to get involved...pumps and pipelines would have been a far better use of taxpayer funds.
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Post by Grainbelt on Oct 24, 2011 10:08:28 GMT -5
Looter, Kind of interesting:
Nearby ethanol $2.68 January $2.46 21 cent discount into '12 Nearby RBOB $2.66 January $2.65 1 cent discount into '12
By Summer 2012, ethanol trades at roughly a 30 cent discount to gasoline....won't have much trouble getting ethanol into the marketplace then I would guess.
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Post by looter on Oct 24, 2011 20:59:35 GMT -5
Looter, Kind of interesting: Nearby ethanol $2.68 January $2.46 21 cent discount into '12 Nearby RBOB $2.66 January $2.65 1 cent discount into '12 By Summer 2012, ethanol trades at roughly a 30 cent discount to gasoline....won't have much trouble getting ethanol into the marketplace then I would guess. Here's the dumbest question ever; How's come ethanol is in backwardation? Is the market discounting the end to the BTC? (Less demand??) Thanks in advance for your response.....
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Post by Grainbelt on Oct 24, 2011 21:10:08 GMT -5
I would assume so. Or it could be..... the semantic equivalent of less demand later.....more demand now by blenders trying to get as much blended as possible and in storage before the end of the btc. I would call the Summer '12 relationship a more normal one (around a 10% discount for ethanol) and the pre 12/31/11 one abnormal. Thus higher demand in the nearterm and a more normal relationship later...........Semantics.
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Post by looter on Oct 24, 2011 22:32:27 GMT -5
I would assume so. Or it could be..... the semantic equivalent of less demand later.....more demand now by blenders trying to get as much blended as possible and in storage before the end of the btc. I would call the Summer '12 relationship a more normal one (around a 10% discount for ethanol) and the pre 12/31/11 one abnormal. Thus higher demand in the nearterm and a more normal relationship later...........Semantics. So we have artificially high demand for ethanol today sparked by fears of an end in the BTC at year's end? Sounds plausible. Thanks for your singular brilliance GB!
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